Infrared Search & Track (IRST) System Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Component (Scanning Head, Processing Unit, Control & Display Unit), By End User (Civil, Defense), By Platform (Airborne, Naval, Land, Others), By Region, & Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 7.65 Billion
CAGR (2026-2031)	5.88%
Fastest Growing Segment	Naval
Largest Market	North America
Market Size (2031)	USD 10.78 Billion

Market Overview

The Global Infrared Search & Track (IRST) System Market will grow from USD 7.65 Billion in 2025 to USD 10.78 Billion by 2031 at a 5.88% CAGR. The Global Infrared Search & Track (IRST) System Market involves passive sensors that detect and track objects via thermal emissions without emitting radiation, enabling stealthy target acquisition. The market is primarily supported by the critical need to counter low-observable aerial threats and the system’s immunity to electronic jamming, fundamental drivers that remain distinct from transient market trends. This strategic prioritization is reflected in substantial sectoral investment; according to the Aerospace, Security and Defence Industries Association of Europe, in 2024, the European defense sector turnover increased by 13.8% to €183.4 billion, underscoring the intensified fiscal commitment to modernizing combat capabilities including optical sensors.

However, a significant challenge impeding broader market expansion is the inherent performance degradation of infrared sensors in adverse atmospheric conditions. High humidity, clouds, and precipitation can attenuate thermal signals, thereby limiting the operational reliability of these systems compared to active radar in specific environments.

Key Market Drivers

The Accelerated Integration of IRST Solutions in Next-Generation Fighter Aircraft is a primary catalyst propelling market growth, as modern air forces prioritize passive sensing capabilities to secure air superiority. Unlike active radar, which can betray an aircraft's position, IRST systems enable pilots to detect and track aerial threats via heat signatures while maintaining electromagnetic silence, a critical advantage for fifth-generation platforms operating in contested airspace. This integration momentum is exemplified by the sustained production of advanced stealth fighters equipped with embedded electro-optical targeting systems. According to Lockheed Martin, January 2025, the company delivered 110 F-35 aircraft in 2024, directly increasing the global operational fleet utilizing these sophisticated onboard sensor suites.

Concurrently, the Expansion of Global Defense Budgets and Military Modernization Initiatives provides the essential financial foundation for procuring these high-cost avionics technologies. Heightened geopolitical instability has compelled nations to aggressively increase fiscal allocations for defense, facilitating the acquisition of advanced optical tracking systems to counter evolving peer-adversary capabilities. According to the Stockholm International Peace Research Institute (SIPRI), April 2024, total global military expenditure reached $2,443 billion in 2023, marking a 6.8% increase in real terms. This fiscal surge is particularly evident in strategic alliances; according to NATO, February 2024, European Allies and Canada were projected to invest a combined total of $380 billion in defense in 2024, underscoring the robust funding environment supporting the wide-scale deployment of next-generation sensor technologies.

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Key Market Challenges

The inherent performance degradation of infrared sensors in adverse atmospheric conditions stands as a significant impediment to the growth of the Global Infrared Search & Track (IRST) System Market. Since IRST systems rely on detecting thermal contrast, their operational efficacy is severely compromised in environments containing moisture such as heavy rain, dense fog, or cloud cover, which absorb and scatter infrared radiation. This physical limitation means defense operators cannot depend solely on passive optical sensors for mission-critical situational awareness, compelling them to maintain active radar systems for guaranteed all-weather capability.

This necessity for sensor redundancy restricts the market potential of IRST technology by categorizing it as a complementary asset rather than a standalone replacement for traditional radar. Consequently, procurement budgets are divided across multiple sensor types, limiting the financial allocation available specifically for infrared systems. This constraint persists despite the massive scale of the broader defense sector; according to the Aerospace Industries Association, in 2024, the U.S. aerospace and defense industry generated over $995 billion in total business activity. While this figure indicates substantial capital availability, the inability of IRST to function reliably in all climatic conditions prevents it from capturing a more significant share of these defense investments.

Key Market Trends

The Integration of Artificial Intelligence and Machine Learning for Automated Target Recognition is fundamentally reshaping the market by addressing the critical challenge of high false-alarm rates in passive sensing. Unlike traditional algorithms that struggle with thermal clutter in complex environments, AI-driven processing enables IRST systems to autonomously distinguish between legitimate aerial threats and background noise, significantly reducing pilot cognitive load during high-tempo operations. This technological imperative is driving substantial development funding; according to the European Defence Agency, September 2025, defense Research & Development (R&D) spending among member states reached €13 billion in 2024, a capital injection pivotal for maturing these advanced signal processing architectures.

Simultaneously, the Emergence of Networked IRST for Cross-Platform Cooperative Targeting is expanding the technology’s utility beyond individual aircraft protection to fleet-wide situational awareness. By linking distributed infrared sensors via high-speed data links, military operators can triangulate target positions to calculate range passively, overcoming the distance-measurement limitations inherent in standalone optical sensors. This trend is rapidly extending into the space domain to counter hypersonic threats; according to Investing News Network, December 2025, the Space Development Agency awarded $3.5 billion in contracts for missile tracking satellites, signaling a decisive shift toward a proliferated, global infrared sensor mesh.

Segmental Insights

The Naval segment represents the fastest growing category in the Global Infrared Search & Track (IRST) System Market, driven by the increasing demand for passive detection capabilities in maritime security. Defense forces are prioritizing these systems to identify sea-skimming missiles and aircraft without utilizing radar emissions that reveal vessel locations. This expansion is supported by fleet modernization programs from entities such as the U.S. Department of Defense, which focus on enhancing situational awareness in contested waters. Consequently, the installation of IRST units on combat ships is accelerating to counter emerging aerial and surface risks effectively.

Regional Insights

North America maintains the leading position in the Global Infrared Search and Track System market, largely due to substantial defense expenditures and a robust aerospace infrastructure. The United States Department of Defense actively funds the integration of these sensor systems into military aircraft to enhance target tracking capabilities without radar emissions. The region also hosts major defense contractors that drive development through consistent government procurement contracts. These factors, combined with a strategic emphasis on modernizing air combat fleets, ensure North America remains the dominant region in this sector.

Recent Developments

• In October 2025, Lockheed Martin secured a firm-fixed-price contract worth $233 million from the U.S. Navy to initiate full-rate production of the IRST21 Block II system. This agreement facilitated the delivery of critical components, including infrared receivers and processors, for the F/A-18E/F Super Hornet fleet and the Air National Guard. The Block II variant featured enhanced optics and computing power, allowing aircraft to passively detect and engage airborne threats in radar-denied environments. This production milestone underscored the successful operational maturation of the technology, ensuring that frontline forces possessed a decisive advantage against low-observable adversaries in electronic warfare scenarios.
• In November 2024, Safran Electronics & Defense unveiled the Omnisight optronics suite during the Euronaval exhibition, marking a significant advancement in naval situational awareness. This new system combined a panoramic Infrared Search and Track (IRST) sensor with electro-optical cameras and artificial intelligence processing to detect and classify asymmetric threats such as unmanned aerial vehicles and small surface vessels. By fusing data from multiple sensors, the suite provided sailors with real-time, accurate tracking information to support rapid decision-making and ship self-defense. The launch highlighted the company's focus on addressing evolving maritime security challenges through integrated, intelligent sensor technologies.
• In September 2024, Leonardo collaborated with Top Aces Corp. to integrate the Skyward Infrared Search and Track (IRST) system onto the F-16 Advanced Aggressor Fighter platform. This strategic partnership aimed to provide high-fidelity training solutions by equipping the commercial adversary aircraft with passive detection capabilities similar to those found on modern fifth-generation fighters. The Skyward system allowed pilots to detect and track airborne targets at extended ranges without emitting radar signals, thereby enhancing situational awareness. This integration supported the U.S. Air Force’s requirement for realistic combat training against technologically advanced threats in contested electromagnetic spectrums.
• In June 2024, HENSOLDT presented a new multifunctional infrared detection system designed to enhance the reconnaissance and self-defense capabilities of various flying platforms. This advanced sensor solution utilized two-color infrared technology to improve hazard detection ranges while significantly reducing false alarm rates. The system comprised a central computer and an imaging unit, which enabled functions such as hotspot detection and general surveillance. According to the Head of the Optronics & Land Solutions Division at HENSOLDT, the lightweight design and high-performance specifications allowed for seamless integration into fighter aircraft, contributing to superior threat identification in complex operational environments.

Key Market Players

• Leonardo S.P.A.
• Thales Group
• Rheinmetall AG
• Aselsan A.S.
• Safran S.A.
• Lockheed Martin Corporation
• Northrop Grumman Corporation
• HGH Systèmes Infrarouges
• Tonbo Imaging Private Limited
• Raytheon Technologies Corporation

By Component	By End User	By Platform	By Region
Scanning Head Processing Unit Control & Display Unit	Civil Defense	Airborne Naval Land Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Infrared Search & Track (IRST) System Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Infrared Search & Track (IRST) System Market, By Component:

• Scanning Head
• Processing Unit
• Control & Display Unit

• Infrared Search & Track (IRST) System Market, By End User:

• Civil
• Defense

• Infrared Search & Track (IRST) System Market, By Platform:

• Airborne
• Naval
• Land
• Others

• Infrared Search & Track (IRST) System Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE